The replace positions Zinnwald because the second largest onerous rock lithium undertaking within the European Union (EU) and the third largest one in Europe by each useful resource measurement and contained lithium, the corporate stated.
Europe’s largest onerous rock lithium deposit and the world’s fourth-largest non-brine asset is the Cinovec lithium undertaking within the Czech Republic, owned by European Metals (ASX, LON: EMH) and state-controlled utility CEZ.
Zinnwald has introduced plans to conduct a pre-feasibility research in gentle of the evaluation replace. The research goals to reinforce the expanded undertaking and discover the potential for a second part of manufacturing. It’s going to additionally handle methods to reduce environmental and neighborhood affect whereas evaluating technical check work and trade-offs, the miner stated.
Chief government officer, Anton du Plessis, stated the PFS ought to be accomplished within the first three months of 2025.
“We’ve got already accomplished many workstreams, with a number of extra underway or nearing completion,” du Plessis stated. “Key upcoming milestones embody ongoing metallurgical testwork, detailed mine planning, allowing and industrial actions.
Whereas the corporate is in a snug monetary place, it famous it was looking for German federal and state authorities help after receiving an invite in June to use for grant funding. The provide to take part was issued as a part of Germany’s new initiative aimed toward fostering the event of climate-neutral and strategically very important applied sciences.
If profitable, 70% of the funding shall be equipped by the federal authorities, whereas the remaining 30% shall be contributed by the State of Saxony, which has already proven help for the battery-chain undertaking.
Positioned within the coronary heart of Europe’s chemical and automotive industries, the undertaking, about 35km from Dresden, is predicted to supply battery grade lithium carbonate, lithium hydroxide and lithium fluoride (Li2CO3, LiOH, LiF) or a mix of them.
Costs for lithium, as soon as known as “white oil”, have fallen dramatically over the previous 18 months resulting from slowing development in electrical car gross sales, together with within the prime EV shopper China, and a market oversupply.
The spot market lithium hydroxide costs on a CIF China, Japan, and South Korea foundation have fallen by 73% yr on yr, whereas lithium carbonate costs have misplaced 69% in the identical interval, based on knowledge from Fastmarkets.
Zinnwald Lithium’s inventory climbed almost 5% on the announcement and have been buying and selling at 8.2p close to closing time. This leaves the corporate with a market capitalization of £38.84 million ($50.4m).